Effective from 1st July 2009 for the 2009/2010 Tax Year onwards, Reportable Employer Superannuation Contributions will be reported on employees Payment Summaries. Reportable Employer Superannuation Contributions are employer contributions made to a superannuation fund for an employee where the employee has been able to influence the payment. The most common example will be superannuation contributions made by the employer under a salary sacrifice agreement (ie: 8.25% sacrifices and voluntary sacrifices).
Reportable Employer Superannuation Contributions will be included by the Government in the following assessments:
a) Medicare levy surcharge threshold calculation
b) Medicare levy surcharge (lump sum payment in arrears) tax offset
c) all dependant tax offsets
d) senior Australians tax offset
e) pensioner tax offset
f) mature age worker tax offset
g) spouse super contributions tax offset
h) super co-contributions
i) deduction for personal super contributions
j) Higher Education Loan Programme (HELP) and Student Financial Supplement Scheme (SFSS) repayments.
The new law also affects a range of Centrelink and Child Support benefits and obligations.
If you are presently salary sacrificing superannuation contributions then you should understand the above changes. A link to the Australian Taxation Office web site is below:
